Credo Technology Group (NASDAQ:CRDO) Stock Price Down 7.8% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price was down 7.8% during trading on Monday . The stock traded as low as $86.49 and last traded at $87.81. Approximately 6,528,959 shares were traded during mid-day trading, a decline of 9% from the average daily volume of 7,175,498 shares. The stock had previously closed at $95.24.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on CRDO shares. New Street Research set a $240.00 price objective on shares of Credo Technology Group in a research note on Tuesday, December 2nd. Weiss Ratings reissued a “hold (c)” rating on shares of Credo Technology Group in a research note on Friday. Zacks Research upgraded Credo Technology Group from a “hold” rating to a “strong-buy” rating in a report on Tuesday, March 3rd. Rosenblatt Securities reaffirmed a “neutral” rating and set a $125.00 target price on shares of Credo Technology Group in a research report on Monday, March 23rd. Finally, TD Cowen reiterated a “buy” rating on shares of Credo Technology Group in a report on Tuesday, December 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, Credo Technology Group presently has an average rating of “Buy” and an average price target of $206.33.

Credo Technology Group Trading Down 7.8%

The stock has a market cap of $16.20 billion, a PE ratio of 48.78 and a beta of 2.67. The business’s 50-day moving average price is $117.83 and its 200-day moving average price is $141.03.

Credo Technology Group (NASDAQ:CRDO) last posted its earnings results on Monday, March 2nd. The company reported $1.07 EPS for the quarter, beating analysts’ consensus estimates of $0.78 by $0.29. Credo Technology Group had a net margin of 31.81% and a return on equity of 29.63%. The company had revenue of $407.01 million during the quarter, compared to analysts’ expectations of $385.94 million. During the same quarter in the prior year, the company posted $0.25 earnings per share. Credo Technology Group’s revenue for the quarter was up 201.5% compared to the same quarter last year. As a group, analysts predict that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current year.

Insider Activity

In related news, Director Pantas Sutardja sold 1,875 shares of the company’s stock in a transaction dated Friday, January 30th. The stock was sold at an average price of $128.67, for a total transaction of $241,256.25. Following the transaction, the director directly owned 5,892,034 shares of the company’s stock, valued at $758,128,014.78. This represents a 0.03% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CTO Chi Fung Cheng sold 27,500 shares of the stock in a transaction dated Tuesday, March 24th. The shares were sold at an average price of $100.67, for a total value of $2,768,425.00. Following the completion of the sale, the chief technology officer owned 6,217,370 shares of the company’s stock, valued at approximately $625,902,637.90. This trade represents a 0.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 398,601 shares of company stock worth $50,891,520. Insiders own 11.84% of the company’s stock.

Hedge Funds Weigh In On Credo Technology Group

Several hedge funds have recently modified their holdings of CRDO. Spear Advisors LLC purchased a new position in shares of Credo Technology Group in the 4th quarter valued at approximately $11,705,000. World Investment Advisors boosted its stake in Credo Technology Group by 77.5% in the 4th quarter. World Investment Advisors now owns 2,870 shares of the company’s stock worth $413,000 after purchasing an additional 1,253 shares in the last quarter. Corient Private Wealth LLC grew its position in Credo Technology Group by 1,665.6% during the 4th quarter. Corient Private Wealth LLC now owns 26,573 shares of the company’s stock worth $3,824,000 after purchasing an additional 25,068 shares during the last quarter. Reflection Asset Management purchased a new stake in Credo Technology Group during the 4th quarter worth approximately $25,000. Finally, Clearwave Capital LLC acquired a new position in Credo Technology Group during the 4th quarter valued at approximately $708,000. Institutional investors and hedge funds own 80.46% of the company’s stock.

Credo Technology Group Company Profile

Credo Technology Group, Inc (NASDAQ: CRDO) is a fabless semiconductor company that develops high‑speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low‑latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.

Credo’s product portfolio centers on high‑speed analog and mixed‑signal devices designed to preserve signal integrity and extend reach over copper and optical links.